What You Need To Consider When Buying A Home

Buying a new home can be one of the most stressful things you do in your lifetime. You are forking out a lot of money for this place, so it has to be right on many levels. The whole buying process can be emotional from start to finish. The house search, the viewing, the phone calls and the anticipation of waiting for things to go through. It’s certainly not as easy as heading to the store buying something and that’s the end of it. So with that in mind, I thought it would be a good idea to share with you some of the things to consider when buying a house.
 
Putting the emotions aside can be difficult. But embracing them is just as important because your emotion will help you to make the right decision overall. It’s not an easy thing to do, buying a home. So cut yourself some slack and prepare yourself as much as you can. It can be a rollercoaster ride.

Location, location, location

One of the of first things you have to consider is the location in which you are buying your new home. It may need to tick a lot of boxes. What you have to consider are yourself and your family. So the location must be close enough for your to commute to your job. There Is no point moving far away as a long commute to work will only eat into your day. If you don’t drive into work, then you will need to find out whether the location has good transport links. 

Other factors to consider will be the local schools if you have children to think about. Do they have good reports? Are they close enough to get to? Sometimes it’s the more practical things we forget to think about. Things like whether there are supermarkets or shops close by. Perhaps local restaurants or entertainment. All of these things need to be factored in to decide whether the location is right for you and your family. Pinpointing the locality in which you want to search will make things much easier. It means that you know the place works, so when you begin your viewings, you only have to focus on the property.

Speak to an agent you trust

An estate agent is one of the people you will talk to most when it comes to buying a new home. So it’s essential you have confidence in them, and you feel you can trust them. This is the person you will speak to in regards to what you want out of a place. So you will trust their judgement when the provide you with options. You could get in touch with this office at Entwistle Green nor others like it. 

Having confidence in the people that will be helping you through this process is important. You are spending a great deal of money on this property. It’s an investment as well as a home, so it has to be handled right from start to finish. The process is already difficult enough without having people involved you don’t trust or have no confidence in. 

The type of property you need

Once you have decided on your location and made contact with some agents the next thing to do is decide on the type of property you want and need. The first thing to do is decipher the things you need to have. So this is the number of bedrooms you need as a minimum. Whether you require off road parking. If the house has a garden or yard. These are things that you can’t do without. The fundamentals. The next thing you then do is add the nicer details. An extra bedroom would be great, for example. Or a garage would be a nice bonus. Things like that. It’s important to communicate all of this with the agents looking for your property. They need to know what you must have and what you would like to have. This will make their search much easier. You also need to determine the type of property you want. You may only want a house, but you might consider a bungalow. Or perhaps you are looking for a more modern living arrangement so would consider an apartment. Ask yourself all the hard questions and if it is easier, make a list, so you stick to what you want.


Will you consider a project?

Another big question to ask yourself is whether you would consider a project or not. A project can be one of two things. It could either be something that needs a lot of work. Perhaps a complete renovation that may not allow you even to live in it before some work has taken place. Or it could mean something that requires modernising. That is totally liveable but just needs bringing up to date. Or if any of those are not an option then you need to specify that you want something that is done and ready. 

What you will find is that there will be a range of properties available. Ranging from the derelict to the pristine. You need to decide where your cut off point would be. The less work that needs doing, the more money you will pay upfront for the privilege. But there are other factors to consider. Things like whether you have the time, patience and funds in place to carry out any necessary work. Again it’s about asking how far you will go for the right place and communicating that to your agents. 

Have you got the financials in place?

The big money question is whether or not you have the finances in place to go ahead with a sale. Mostly this tends to be an agreed mortgage in principal, and your deposit saved up and ready. It’s a good idea to know all of this and have it in place before you begin your search. It will determine your budget and what you have to spend. However, it also means that if you do see something that will cost that bit more you can easily go back and ask whether or not you can stretch to it. 


Use your head as well as your heart

It is so easy to get drawn into the emotional side of things when it comes to buying a property. But this is where you have to reign yourself back a little. While the emotion will always determine whether or not you love a place or hate it. Your head will be able to tell you whether or not it’s the right decision or the wrong one. It can be easy to fall in love with a quaint cottage with a rose garden. But if it needs more money than you have spent on it then it won’t be the right place for you. 

Listening to both will be conflicting at times, which is why buying a new home will never be a snap decision you make. There are a lot of factors to consider. Some sensible and some emotional. But they are equally important to the decision making process. You also have to consider the other parties involved. You partner, or kids, for example. Will they like it, do they love it? Will they live there?

Be aware that the home search can take longer than you think

Searching for a new home can take longer than you think. It is very evident that it is rare to buy the first house you see. Unless you are lucky enough that it happens to tick every box. It may, at times, become a little soul destroying seeing place after place and none of them being quite right. But patience is important when it comes to buying a home. What you have to remember is that you are spending a lot of money. This place has to be right, the location, the type of property. It all has to work for you and anyone else involved. 

Try and enjoy the process and learn where you can. You will find that each viewing gets easier, that you know what you are looking out for. You will certainly refine exactly what you want as time goes on. It may take longer than you want it to, but it will be worth it in the end. 

I hope this helps you if you find yourself in the buying process. Keeping a level head throughout it all will be important. But making sure you are clear on what you want from the start will be the best thing you can do.

source: 20smoney.com

7 Mistakes to Avoid as a First-Time Home Buyer

First-time buyers are often a bit overwhelmed at the thought of buying a house.

The intention of this article is to help prepare you for what NOT to do when buying a house for the first time, and you’ll pick up some great information along the way.

Without further ado, let’s dive in…

1. Not educating yourself on the buying process


One of the best tips we can give to anyone who’s buying a house for the first time is to educate yourself on the steps involved when buying a house. Too many first-time home buyers are jumping into the housing market because it ‘feels’ right and this is a mistake. How can you know what feels right when you’ve never done it before?

Instead of buying a house based on feelings, you need to buy a house based on facts. Before committing to buy a home, you need to make sure that you’re ready to buy your first house.

Do you know what first time home buyer programs are available in your area? First-time home buyers have a number of benefits available to them that offer big time savings.

Find a top local Realtor in your area and ask them specifically to chat with other first time home buyers they’ve worked with in the past. Don’t hesitate to gather information on the experiences of others who have worked with them.

2. Not preparing to buy a house

Time to start saving. Once you think you have enough money saved, you are going to pay for the inspectors, the attorney, the appraiser, etc.

Not preparing properly is a common buyer mistake, especially one among first-time buyers who have never purchased a house before.

If you’re buying a house for yourself then you should have no problem putting together a list of your priorities. Those who are buying with a significant other will have to strategically prioritize what matters most to both people who will be living in the house. Those buying with the intentions of starting a family will have different priorities.

Knowing your priorities ahead of time is going to make for a much easier home search. The location should be priority #1 when buying a house – you can change the condition of a house, you can’t change the location (or the school district).

3. Finding the house before the location

A lot of time first time home buyers will wait to find the perfect house that will never hit the market. There are some things buyers MUST be willing to sacrifice in order to find a great home at a great price in an excellent location. If there is one thing a home buyer should never settle on, it’s location.

Buying a big house in a bad location is a common first-time buyer mistake. You should buy a house based on the priorities you have in a location, and narrow down your criteria before you start previewing homes.

One common mistake a first time home buyer will make is failing to buy a house in the location they want because they are ‘tempted’ to buy a mansion in a location that is less desirable. Once you start previewing homes outside of your desired area you’ll confuse yourself. For instance, someone with a budget of $300,000 will be able to buy a much bigger house in Durham, NC than they would if they bought a home in Cary, NC. The difference here is schools, amenities, safety, commute time and more.

4. Overextending on your budget

One of the worst mistakes a first-time buyer can make is overextending on your budget. Your home instantly becomes a burden instead of something you can enjoy. One of the best things you can do as a homebuyer is reverse-engineer your monthly costs before you buy a house.

If you can spend 3-6 months calculating an average cost to live, you can set budgets for how much you’re comfortable spending and saving. Whatever is left over is a comfortable monthly payment on a house (don’t forget about mortgage insurance).

For those purchasing a home with less than a 20% down payment, private mortgage insurance is likely to be included as a requirement in owning your home. Private mortgage insurance will typically go away once you have paid back 20% of the loan.

 5. Not having the right real estate team in place

Your real estate team is like a group of coaches for first-time home buyers. Everyone makes mistakes, it’s human nature. It’s your real estate team’s job to make sure they coach you through the mistakes proactively.

As a first time home buyer, it’s important you assemble the right real estate team. You’ll want to ensure you have the right mortgage lender, real estate agent, home inspector, and attorney.

Having the right real estate team in place will go a long way in your home purchase as they will be able to guide you throughout the process. Make sure you find a team that works well with you and works well together to ensure a smooth home buying experience!

6. Buying based on emotion

The best decisions you can make when buying a home are the ones based on facts. Too often I watch a buyer make an offer on a home they love only to be outbid by another offer. Hearing that the home sold to someone else is not easy. It’s one of the toughest things you can hear as a buyer, especially if it’s your first time.

Becoming depressed as a buyer is a common mistake first-timers make.

When you allow yourself to become depressed your body does two things typically. One, it shuts down completely and it no longer wants to buy a house because there was too much ‘pain’ experienced. Or two, you will buy anything just to feel better about missing out on the last home.

These are commons mistakes made by all sorts of buyers, not just first-time buyers.

If you make an offer and the home sells to someone else then treat it like a GOOD thing. You just picked out one of the most desirable homes on the market, meaning you recognize a good deal! Pat yourself on the back, and go find a better one!

7. Not calculating the true costs

Are you ready for all of the costs that come with buying your first house, and all the costs that come with homeownership? There is going to be a wake-up call for first-time home buyers who are looking at just their principal and interest monthly payments. There are many more costs that come with both purchasing a home and owning a home.

Looking at ‘what you can afford’ when buying a home is a common first-time buyer mistake.

What you can afford, and what you can afford while maintaining your current lifestyle are two entirely different numbers.

Some of the recurring costs you’ll want to be sure you include when buying a house are:

    Property Taxes
    Mortgage Insurance (If you put less than 20% down)
    Home Maintenance
    Homeowner’s Insurance
    Utility Bills

Final thoughts on mistakes made by first-time buyers:


It is imperative to factor loan origination fees, attorney fees, inspection fees, appraisal fees, mortgage insurance, and any other closing costs into your budget when buying a home. It is your job as a buyer to make sure you factor all the costs involved when purchasing a home. Your Total Mortgage loan officer or your realtor will be critical in helping you understand which fees apply to you, how much those fees will be, and what your options are.

I cannot stress to my buyers enough is that location is the most important part of a home. You can change the price, you can change conditions–you cannot change the location.

If you can avoid making these 7 mistakes when purchasing your first house, you are going to be in much better shape than most of the second and third-time home buyers out there!

source: totalmortgage.com

The Anatomy of a Property Listing

Have you ever wondered where the information that makes up online property listings comes from? Or maybe how you know that information is current or accurate? Or even if there’s a place to see a new listing before other buyers?

Well, it all ties back to something called an MLS.

The rise of the MLS

The content, format, and filing of listings are governed by multiple listing services, the more than 700 local organizations created to match sellers with buyers. MLSs were around long before the Internet, but the migration of real estate listings online suddenly gave them value as content.

The biggest web sites attract millions of unique visitors a month. The most attractive and most current listings attract not only home buyers but online peeping Toms, or “lookie loos,” who aren’t interested in buying a house but like to check out the interiors of their neighbors’ homes and ogle the digs of the rich and famous.

The Internet has greatly changed real estate, but the dominant role of MLSs remains intact. They are the foundational databases that all other real estate sites rely upon for content, from the big national sites like Realtor.com and Zillow to sites hosted by local brokers and agents.

In order to get your home listed on your local MLS, you must work with a broker who is a member. Today, in most markets, if you want to market your home yourself, you can get your home listed by a broker who charges only flat fee rather than a commission.

Listings as an art form
Writing listings is a fine art. The objective is to tell prospective buyers just enough to get then interested in touring the property but not so much as to disqualify it. Many times, prospective buyers will end up purchasing a property quite different from what they have in mind.

A good listing needs to draw them in enough to take a look at the property even if its size, price or location may not conform to what the buyer has in mind.

Listings are produced by the real estate agent representing the seller using a template designed to create content that complies with local MLS rules. The template includes the basics: beds/baths, square footage, lot size, age, utilities and appliances, school district, and more. A mini industry provides brokers with professional photos, “virtual tours” (still photos with a voiceover and music), and videos, which usually do a better job selling a house than words alone.

Obviously, you will see only the home’s features on the listing—not the next door neighbor’s messy back yard or the highway under construction across the street.

Timing listings

A particularly important piece of data is “time on site,” which is different than “days or time on market.” The former refers only to the days that have elapsed since the listing was posted on a particular site. It may—or may not—have been listed on the local MLS for a much longer.

Knowing how long a property has been listed is particularly valuable information. If it hasn’t sold in more than 90 days, that suggests the property might be overpriced for the market. The longer a property has been on the market, the more careful a buyer should be–but the stronger your bargaining position will be as well.

Most multiple listing services require that members release new listings to the service within a short time frame of obtaining the listing, usually 48 hours after signing up a seller. But before that, the brokerage may list the property on its own site, giving its customers a head start.

Getting the jump on other buyers

If you know where you want to buy, it’s a good idea to bookmark local brokers and check out new offerings on a daily basis. In recent years, a new tactic to let buyers know that a new listing is in the works before the home is ready to be shown called “coming soon” builds advance buyer interest in a property.

“Coming soon” is not a new idea. Real estate agents have been sticking “coming soon” signs in the front yards of their clients for decades, especially during sellers’ markets. Now on leading sites you’ll see complete listings marked “coming soon” to premarket homes up to 30 days before they are available to be toured or to accept an offer.

Targeting listings to reach buyers

Once on the MLS, listings can go many places, with the consent of the listing broker. First, the broker and agent listing the property have first shot at posting the listing, then the local MLS will make it available to other brokers and agents.

A number of MLSs have their own consumer-facing sites. MLSs also have agreements with the big national web sites like Zillow and Realtor.com to provide their listings directly from the database. Syndicators like ListHub work directly with brokers to place their listings on sites as diverse as newspapers, magazines, real estate franchises, and regional brokers beyond their local MLS. Brokers get feedback and can tailor their outreach to fit their marketing plan.

Online MLS listings are remarkably timely. MLSs on the large national sites are updated as frequently as every 15 minutes with new listings, sold listings and price changes. Web sites with properties that are not listed on an MLS, like “for sale by owner” listings or “pocket listings”, may not be as current.

Nowhere else in the world can you see so many properties for sale, displayed accurately and attractively. The Internet has truly put America’s real estate for sale inventory at the fingertips of buyers, making it possible for them to monitor virtually all the possibilities within a neighborhood and price range. Sellers now can reach not only a buyer in the same community, but also a relocating family across the nation or an investor actor the globe.

source: totalmortgage.com

First in Southeast Asia: ZipMatch makes home buying a virtual reality

MANILA, Philippines - Online real estate marketplace ZipMatch has launched its 360 Virtual Reality service aimed at making the home buying process easier for property seekers and sellers.

As property viewing is an integral step in the home buying process and the use of the Internet and mobile devices is on the rise, ZipMatch decided to launch the 360 Virtual Reality service to give real estate sellers the ability to conduct on-demand viewing of residential projects or model units for interested buyers without having to visit the actual location of the property.

The new technology makes it easier for home buyers to check out real estate projects they are interested in, through the use of a computer or mobile device, as well as a pair of 360 Virtual Reality goggles.

The service is being made available by the startup as a subscription feature under ZipMatch Pro, a full-service technology-based toolbox for brokers, sales agents, developers and real estate sellers.

Using the subscription feature, ZipMatch Pro subscribers can browse, select, and showcase the clear, video-quality moving images of properties in 360 degrees, using a desktop or mobile device by accessing the company’s website ZipMatch.com or mobile app ZipMatch Pro.

To enhance the viewing experience and make home buyers feel as if they are inside the property for sale, brokers can set up the virtual reality access by making use of the ZipMatch 360 Virtual Reality goggles.


ZipMatch co-founder Chow Paredes said during the launch of the virtual reality service the technology not only helps home buyers in their selection of the property, but also caters to real estate professionals seeking to improve their service to customers.

“The mission of ZipMatch is to empower home buyers, right? In the same way, we also aim to empower the seller side of the real estate industry, more specifically our real estate professionals. We believe that our real estate professionals play a pivotal role in creating a healthy, open, sustainable marketplace of well-informed, savvy home seekers. If we raise the bar in terms of service, knowledge, and education, I believe we will be indirectly helping the home buyers by connecting them with well-rounded, real estate sellers who will address their needs and wants,” she said.

ZipMatch is the first company in Southeast Asia to offer virtual reality images of real estate projects for sale.

Following the launch of the new service in the Philippines, ZipMatch is looking to bring the technology to Indonesia within the year.

Founded in 2012, ZipMatch provides property listings and develops technology tools to help speed up the home selling or home buying process.

The startup has received support from Monk’s Hill Ventures, 500 Startups, IMJ Fenox, 500 Startups, Ideaspace Foundation and Hatchd Digital.

Among the startup’s clients are Ayala Land, Anchor Land and Crown Asia Properties.

source: philstar.com

5 Reasons Not to Use Your Sales Price to Test the Market

f you’re thinking about listing your property with a higher or lower price to test the market, don’t be too quick to make this move, as it can prove to be a costly mistake. Pricing your property incorrectly can turn potential buyers off for a number of reasons.

Consider these key moves to help you better understand the pitfalls you should avoid to save time and avoid making a big money mistake.

Sillol

When your home first hits the MLS, it’s fresh on the list of available homes and more interesting to a lot of buyers. That’s why you want to strike while the iron is hot. A buyer who wants to be in your neighborhood may pay a higher amount, but you won’t know if you’ve priced your home too low. For great price comparisons in your area so you know the going rates, check out Realtor, Trulia, or Zillow.

2. You can lose buyers doing internet searches

While a lower price might draw a few potential calls, you can actually turn people away if you price too low. They will want to grab a great deal, but a potential buyer who has done their homework might think something is wrong with a property priced too low.

As the owner, you can also lose buyers doing internet searches because they may not see your listing. Keep in mind that a home should have a competitive price. Sales prices that are dramatically lower might not show up in search results in the same neighborhood.

3. Your listing will get old

If you’re waiting for a buyer, you may end up finding that your property is sitting for weeks or months. And, if you’ve already moved, you still have to cover the mortgage payment. That’s another reason why you want to ensure you’ve priced it accordingly and work with an agent who can help you sell–and advertise–your property the right way.

4. The house won’t appraise

Another problem you can run into is with the appraisal. Price it too high, and the appraisal may come back lower and kill the sale.

Price the property lower than its true value, and it can raise red flags when you get it appraised, as it may get valued at a higher amount. Again, consider the perspective of a potential buyer who may not understand why you’re handing money away.

5. Agents who overprice sound good, but usually have a plan for price reductions

After pricing a home too high, an agent may try to compensate by lowering the price over a period of weeks. On MLS listings, this can make you look desperate A home with several price reductions may result in a buyer who lowballs you because they now think you’re desperate.

Simply find the best rate for your home. This can be done through the inspection, an estimate, or by comparing other properties in the area. The time you take to price your home correctly may help you sell it faster.
Bottom Line

Selling your home can be a time-consuming process, but pricing it right can help with offers. Focus on having a great marketing plan to give your home the visibility it needs, have a floor plan to give potential buyers when they see it, and up-sell the upgrades and improvements you’ve made. That way, you have an investment that future homeowners will see as their future home.

source: totalmortgage.com

Mortgage Pre-approval: Why You Want It & What to Do if You Can’t Get It

When you’re searching for a new home, few steps are as important as getting pre-approved for a mortgage loan.

Not only does it help you as a buyer, but sellers will view you as a better candidate. And if you get involved in a bidding war for your dream home, it helps to be the kind of buyer that sellers consider reliable.

How a mortgage pre-approval works:

First, you send documents proving your income to a mortgage lender. These documents can include your last two paycheck stubs, last two months of bank statements and last two years or income-tax returns. Your lender then studies these documents to verify your monthly income. Your lender will also run your credit to determine your credit score.

Once your lender has this information, it will tell you how much mortgage money it is willing to lend you. It will also give you a pre-approval letter stating this amount.

Why is a mortgage pre-approval important?

1. Streamlines Your Search

By pre-arranging financing, you can save a considerable amount of time. Because a lender will examine your credit report, pay stubs, bank statements, etc., they can tell you exactly what you’re qualified to borrow. That way you know what your price range is so you only look at homes you can afford. Rather than looking at a myriad of properties, you can narrow your search down to a handful and examine those in great detail.

You’re also less likely to be let down or become disillusioned when you fall in love with a property, only to find that it’s out of your price range. This can save you from a lot of frustration and expedite your search.

2. Sellers Take You More Seriously

When a seller has multiple buyers interested in their property, it’s important to stand out from everyone else. In the event that there were three other buyers, and you were the only one with a pre-approval letter, you would have a much better chance of getting the seller’s attention.

That’s because you have direct evidence of your ability to obtain financing. It also shows that you’ve put in the effort to get pre-approved, which proves you have a genuine interest in buying. This should reduce any skepticism or anxiety that a seller may have, and they’re likely to give you more consideration than other candidates.

3. Increased Leverage When Negotiating

Because of the effort you’ve put forth and tangible proof of your financial backing, this can really work to your advantage when making negotiations. According to Ray Mignone, a certified financial planner in Queens, New York, “pre-approval carries more weight when you go to negotiate a deal. It gives you bargaining power.”

Being pre-approved means that it’s basically a done deal, and you don’t have to go through the process of applying for a mortgage in the future. If a seller is faced with your offer and a slightly higher one from another buyer who hasn’t been pre-approved, this can often persuade them to go ahead and accept your offer. If the seller has no other offers, then you may be able to buy their property at a reduced price, and they may be more flexible with their terms.

Taking the time to go through the pre-approval process for a mortgage has some distinct advantages. Once a lender gives you the green light, it can help you find a great property at a fair price while eliminating a lot of hassle.

What if I can’t get pre-approved for a mortgage?
 

Getting denied for pre-approval should not discourage your efforts, although you may need more time to prepare for this large purchase. Therefore, here are five things you can do if you can’t get pre-approved for a mortgage loan.

1. Ask for an explanation

Mortgage lenders are helpful and they’ll provide a reason for the rejection, plus advice on how to proceed. Several factors can disqualify you for a mortgage loan, such as inadequate income, a low credit score and questionable employment. However, if you take a lender’s advice and make the necessary improvements, you might qualify for financing in the future.

2. Build your bank account

When applying for a home loan, the lender will ask for copies of your bank statements. This is to ensure that you have enough cash for your down payment and closing costs. In addition, some lenders want to see a 2 to 3-month cash reserve after paying mortgage-related expenses. If you will not have a cash reserve after paying closing costs and the down payment, the lender may recommend that you postpone buying a house until you’ve saved additional money.

3. Add points to your credit score

A conventional mortgage loan requires a minimum credit score of 650 or higher. Therefore, if you’re turned down for a mortgage due to a low credit score, take steps to build your credit. This can be as simple as paying all your bills on time over the next 6 to 12 months, or paying off a credit card to decrease your credit utilization ratio, which will subsequently raise your FICO score.

4. Increase your income

On the other hand, you might have excellent credit, but not enough income to qualify for a mortgage loan. There are several ways to approach this dilemma. Speak with your lender to see if you can qualify for a lesser amount; or if your spouse works, perhaps you can apply for a joint mortgage, at which time the lender uses your combined income to determine affordability. And if too much debt prevents a pre-approval, paying off credit cards and other loans — student loans, auto loans and personal loans — can increase purchasing power and help you qualify for the desired amount.

5. Wait until the two-year mark

Employment gaps can be the kiss of death when applying for a mortgage loan. For the most part, mortgage lenders require 24 months of consecutive income. Therefore, if you’re just entering the job market, or if you were unemployed in recent months, the lender may reject your application and require that you wait at least two years before re-applying for a mortgage loan.

Bottom line

Applying for a mortgage loan will have its share of obstacles, especially since lenders have tightened their requirements. However, if you carefully prepare for a purchase, you can successfully meet a lender’s qualifications and get the keys to your new home.

source: totalmortgage.com

First Time Homebuyer? Try Your State Housing Authority

One of the best kept secrets about mortgages is the great deals that home buyers—especially first time home buyers—can get on a mortgage from their state housing finance authority. In fact, according to a national survey last year by NeighborWorks America 70% of U.S. adults are unaware of down-payment assistance programs available for middle-income homebuyers in their community.

State housing finance authorities are state-chartered organizations established to help meet the affordable housing needs of their residents. Most housing finance authorities (or HFAs) are independent entities that operate under the direction of a board of directors appointed by each state’s governor.



There are more than 2,400 programs available across the country from state HFAs. For qualifying buyers, they offer first and second mortgages at below market rates, down payment and closing cost assistance, grants and credits to help with monthly mortgage payments, homeownership education and more.

Borrowers with debt payments that are too high to qualify for a conventional loan may be more successful with an HFA loan. Like FHAs, HFAs are exempt from the new ability-to-pay rule that took effect last year, known as the QM Rule.

The programs available through HFAs vary from state to state.  For a directory, you can go to https://www.ncsha.org/housing-help.

In Connecticut, for instance, HFA loans are underwritten by approved lenders. If you live in Connecticut (where, incidentally, Total Mortgage is a participating lender) you should contact your loan officer to learn more about the 38 programs available to home buyers and homeowners from the Connecticut Housing Finance Authority. These include:



The Homebuyer Mortgage Program. 

This is for first-time homebuyers (who have never purchased a home or had an ownership interest in a residence in the past three years) who meet minimum credit, income, and employment standards.

CHFA sets income limits for every town in the state based on local income levels and household size. See CHFA income limits to find out if you qualify.

 Down Payment Assistance.

CHFA also offers loans up to $3000 for first-time buyer who have difficulties raising the cash for down payments and closing costs.

Targeted Areas.

The Connecticut Housing Finance Authority (CHFA) suspends many of its mortgage eligibility rules for homes purchased in areas of the state targeted for revitalization. These “targeted areas” have been recognized by the federal government as likely to benefit from an increase in homeownership.

The cities of Bridgeport, Hartford (except for Census Tract 5245.02), New Haven (except for Census Tract 3614.02), New London, and Waterbury have been designated as targeted areas. Also, portions of Ansonia, Danbury, Groton, Meriden, Middletown, New Britain, Norwalk, Norwich, Stamford, Torrington and Windham have been designated as targeted areas.

Other Programs for Buyers and Owners.


CHFA also offers its residents:

• Mortgage programs for military, police, and teachers
• Homeowner’s Equity Recovery Opportunity (HERO) Loan Program for buying and rehabbing distressed properties
• FHA rehab programs
• HFA Preferred Loan Program for first-time home buyers who qualify for low cost mortgage insurance coverage
• Homeownership Mortgage Program for eligible tenants of publicly assisted housing
• Home Of Your Own Mortgage Program (HOYO) for disabled residents
• Mobile/Manufactured Home Mortgage Program for those purchasing a mobile manufactured home in a state-licensed mobile home park.

 Don’t Forget to Stay Educated

It’s important for new buyers to seek homeownership education. It’s often a requirement for down payment programs and it gives buyers confidence with the home buying process, financing options, including down payment programs, and budgeting.

Take a moment to find out what’s available to you. Don’t assume you won’t qualify. Millions in mortgage and down payment assistance is available through state HFAs every year.

source: totalmortgage.com

Mortgages are Getting More Affordable for First-Time Buyers

Thanks to a series of recent decisions, authorities are opening up the mortgage marketplace to more first-time and low-income homeowners.

Last month, Fannie Mae and Freddie Mac announced that they will begin backing fixed-rate mortgages with down payments as low as 3%. Then, last Thursday, the President announced a 0.5 percent cut to the mortgage insurance premiums the Federal Housing Administration requires—making the already easier-to-qualify-for FHA loan even more affordable.

This comes at a time when lawmakers are looking for ways to jumpstart a slow-moving housing recovery. The theory is that tight lending is keeping thousands of buyers out of the game, and that relaxing certain requirements could be enough to coax the market back to its pre-2006 vigor.

However, this loosening trend has also sparked worries that lax lending may lead us to another housing bust. Fannie Mae and Freddie Mac have attempted to allay fears by explaining that borrowers will still have to meet strict criteria. They must have a credit score of at least 620, buy private mortgage insurance, and receive home ownership counselling.

Meanwhile, the projections for the president’s insurance premium cuts are impressive. The White House expects these cuts to allow up to 250,000 new people to take advantage of the FHA loan program, and the FHA’s reserve fund are projected to grow by 7 to 10 billion dollars this year with the cut—vital, as the FHA has needed hefty federal bailouts in recent years.

Wondering where we stand in all this? Take a look at our interest rates.

What does all this mean for you?

 

That depends on your needs. Because these cuts are aimed at attracting new buyers, those are the same people they benefit the most.

If you’re already considering going with an FHA loan for its low down payment option, the Fannie Mae/Freddie Mac down payment cuts gives you another choice to consider. FHA loans give you the option to put as little as 3.5% down, but they require borrowers to pay private mortgage insurance for the life of the loan. The Fannie and Freddie programs, meanwhile, will allow you to cancel your insurance once the mortgage balance drops below 80% of your home’s value, saving you money.

The Fannie Mae and Freddie Mac cuts take (or took) effect December 13^th and March 23^rd, respectively, and currently apply to just fixed-rate loans.

As far as the president’s proposed mortgage insurance cuts go, they too will have the most impact for those looking at low down payment (or low credit rate) options, namely FHA loans. The White house expects the typical first-time homebuyer to save $900 a year on mortgage payments. The insurance cuts will affect buyers with FHA case numbers issued January 26^th or after, though at the moment, lenders will be allowed to cancel numbers issued before the 26^th.

If you’ve just closed an FHA, you may not be entirely out of luck. You will have to wait 210 days (or make 6 mortgage payments) before you’re eligible for a Streamline Refinance, but you will be able to get the insurance cut eventually.

Want to take advantage of these new requirements? Apply now for a personalized quote.

source: totalmortgage.com

The Unexpected Downsides of Selling Without an Agent

With the internet playing such a huge role in selling a house these days, going it alone—no real estate agent in sight—can look like a pretty simple decision. There are a few big reasons you’re probably considering this route, like being able to skip the 6% commission fee and having complete control over everything from asking price to showing times.

These are worthwhile pluses, and they shouldn’t be ignored. But before you decide to take the plunge all on your own, you should also take a look at some of the potential downfalls.


Pricing.  A large part of a real estate agent’s upfront work is research. How much have similar homes sold for? What are prices in the neighborhood like? What developments are down the road for this area?

Unless you live and breathe real estate, those questions may take a lot of time to answer. Even then, pricing your own home can be difficult for sentimentality’s sake. Many homeowners set their initial asking price too high and scare off would-be buyers.  Others make the mistake of setting it too low and lose money they might have gained.

You may still have to pay commission. Just because you’re forgoing an agent doesn’t mean your potential buyers will. When a seller pays that 6% commission, his or her agent typically splits it with the buyer’s agent—meaning you’re still responsible for that 3% unless you can convince the buyers to pay for it on their own. 3% may be a lot better than 6%, but it’s still more than most expect when deciding against an agent.

It may take longer. Selling a house with a realtor isn’t often a speedy process, but doing it yourself could take even longer. There are several reasons for this. First, without a realtor you won’t have access to the Multiple Listing Service, which agents use to advertise to other agents. That means less visibility, leaving you to put more time and energy into marketing on your own.

Also, unless you or a spouse can make selling your house a full-time job, you’re going to have to work around your current schedule, limiting your opportunities to show the house. When you do show it, expect to still have to wade through the usual amount of window-shoppers and nosy neighbors.

The bargaining and paperwork. Even after you’ve found a buyer, the difficulties aren’t necessarily over. Without a real estate agent to act as buffer between you and the buyer, negotiations can get dicey. Often, for sale by owner homes attract bargain hunters who expect a lower price. The key is to not get emotional, and also know what you’re willing to compromise on from the start.

Closings also come with a lot of legal paperwork, and without an agent to handle it for you, you’re going to need to do a lot of research or else risk your biggest investment. There are buyer’s contingencies, disclosure laws, and title and deed requirements to get up to speed on, and if it ends up being too overwhelming, you may have to involve a real estate attorney anyway.

The bottom line?

Selling a home on your own can be great if you have the right experience and already know what you’re doing. If not, sticking with an agent can actually save you hassle and money.

source: totalmortgage.com

Three Ways to Start Rebuilding Your Home’s Equity

Buying a house is an excellent investment. You might plan to live in a starter home for a few years to build equity, and then move into another place using proceeds from the sale as your down payment. However, life doesn’t always go according to plan. And since there’s no way to predict the housing market, there’s always a chance that home values will decline and rob you of much needed equity.


Declining property values can trigger an upside down loan — which is when you owe more than the property’s worth. Once you’re in this situation, selling a house becomes practically impossible. Sometimes, the only option is to wait for home values to increase; but while you’re waiting, there are steps you can take to start rebuilding your home equity.

1. Make larger principal payments each month

 

Equity is the difference between your home’s value and what you owe the bank. And if you want to build equity faster, increasing your mortgage payments each month is a good start.

Each mortgage payment pays down your principal balance and interest charges. In the early years of a mortgage loan, a larger percentage of monthly payments go toward paying down the interest. However, if you increase monthly payments and make extra principal payments, you can pay down your mortgage sooner. Adding as little as $100-$200 a month to each payment can reduce the principal balance by as much as $2,400 a year.

2. Plan home improvement projects

 

Unless you purchase a new construction home, chances are the house you buy will need some improving. And fortunately, several improvements add value to your property.

Kitchen and bathrooms typically sell homes. For that matter, if these spaces in your home are dated or simply unattractive, a partial or full remodel can modernize the space plus increase your home’s value. Likewise, adding extra square footage to the house raises the property value. You might finish the basement and convert it to a bedroom, an apartment, family room or a game room; or you can add another room on the main level or build a temperature-controlled sunroom for bonus living space. Other updates also increase home values, such as new windows, a new roof and new floors.

3. Curb appeal

 

Many people focus on the interior of their home and completely neglect the outside. But if you’re looking to increase your home’s value, curb appeal shouldn’t be overlooked. The outside of your home is a person’s first impression of the property. And when appraisers assess the value of any property, they also take note of the landscaping and condition of the exterior. New vinyl siding, a new deck and a manicured, de-cluttered lawn adds to the overall condition of your property.

Final Word

 

Home equity increases over time, so you’ll need to be patient. However, if you submit larger monthly payments, complete home improvements and improve the outside of your property, these efforts can give your equity the boost it needs, and when you’re ready to move, you might be able to sell at a price that yields enough profit to put down on your next place.

source: totalmortgage.com

Survival Tips for Living in a House You’re Trying to Sell

Those last minute panic-cleaning skills you’ve developed for in-law visits probably won’t do you much good when months of home showings are on your horizon. Unless you’ve already found the perfect new home and moved, that means it’s time to develop a long-term strategy, even if it’s just for the sake of your own sanity.
Here are some tips for maintaining that tricky balance between the perfect show house and one you actually live in.


Keep the house ready at all times.

Well, try to.

In reality, you’re probably not going to be able to keep your house showroom-worthy for weeks or months at a time. The key, though, is to be constantly making the attempt. That way, when the call comes and you need to get ready for a showing, you can whip the place into shape quickly.

This is a perfect situation to take a page out of the home staging manual. Box up your family pictures and personal collections in anticipation of your move, and clear all your flat surfaces and as much as your storage space as you can spare. If you need to rent a storage unit in the meantime, then go for it. The less clutter you have in your house, the better it will look to buyers and the easier it will be for you to keep neat.

Ask for as much notice as possible

No realtor will try to show your house without first calling you, but when they call is what you should worry about. Realtors’ practices vary, and you may end up with ten hours’ notice or ten minutes’.

The solution? Ask for notice at least a few hours in advance.

If that’s not enough control for you, you can also turn away showings when your house isn’t ready, or limit showings to certain parts of the day. Keep in mind, though, that “limit” is the operative word here. The harder it is for potential buyers to see your house, the fewer opportunities you’ll have for for a serious offer.

Always leave during a showing if you can—and have a plan

Generally speaking, it’s best to leave the house when you have a showing. No potential buyer wants to be reminded that the house belongs to a stranger, or feel watched as they make their decisions. Plus, you probably don’t need to see someone judging your backsplash.

The actual leaving can be a hassle, though, especially if you work at home or have an already-tight schedule to juggle. The trick is to find a quiet place where you can get work done, like a library or coffee shop, or put off doing your errands until a showing forces you out. That way, showings can still be productive.

Be smart about your privacy

You may be used to leaving personal documents and valuables scattered around your house (no judgment), but that’s probably not smart if you’re welcoming strangers into you house with only an equally strange realtor for a chaperon.

If you’ve done a good job staging your house, you may find that potential buyers feel comfortable enough to poke through your closets and cabinets. Even if you haven’t, some people are just nosey. A good rule of thumb? If you don’t want it seen or potentially taken, best to tuck it away somewhere safe.

source: totalmortgage.com

Percentage of First-Time Home Buyers Drops

Numbers released recently by the National Association of Realtors show that only 33% of home purchases in 2014 will be made by first-time buyers. That may not sound terrible on paper, but it means a drop of 5% from last year, and the lowest rate in almost three decades.

But why is this happening, when talk of economic improvement and a steadying housing market is so common? The reason is three-fold. Most first time home buyers are in their twenties and thirties, the same age range most crippled by ballooning student loan debt, rising housing costs, and stagnating salaries. Combined, these factors create a generation hard-pressed to save up for down payments.

And that may not be all. According to The Wall Street Journal:

    “Beyond the issues of affordability, some renters might be putting off home purchases because of the damage they saw housing do to the last generation of buyers, said Doug Duncan, chief economist of mortgage-finance company Fannie Mae.” 

To adapt, many are instead renting with roommates or moving in with family, which creates another curious situation. According to a Zillow study, there are 5.4 million fewer households than there would be if the economy was completely recovered.


So how does all this affect you?

Unless home-ownership eludes you for the reasons outlined above, it doesn’t, at least not directly. But in all probability, this is only a symptom of a greater ill. With some worrying about a student debt bubble and others whispering about forgiving student debt, the underlying problem isn’t likely to disappear on its own, and may mean some more turbulence before the economy evens out completely.

source: totalmortgage.com

How to Spot a Bad Realtor—And then Part Ways Properly

Just because real estate agents have guidelines to follow and tests to pass doesn’t mean they’re all the same, quality-wise. Whether you’re putting your home on the market or about to start the search, here are the hallmarks of a realtor you should stay away from.

The agent is difficult to get a hold of

Communication is a super important part of home selling and buying process. If your realtor takes longer than 24 hours to get back to you, or won’t give you weekly status updates, then it just isn’t going to work out and you might want to consider switching.

The agent is part-time.

Nothing against people who have other commitments, but if this isn’t your realtor’s full time job, you might want to look elsewhere. Having an agent on the outskirts of the industry usually means you’re the one missing out.

On the same note, don’t feel like you need to work with a friend or relative just because they happen to have a real estate license. If they’re not working actively and familiar with your area, they’re really not qualified to be helping you sell or buy.

The agent makes too-good-to-be true promises

In a down market, or even one that’s just starting to pick back up again, you’re going to have to face certain realities, and a good realtor won’t sugarcoat them for you.

So what sort of things should you hear from a good agent? That the longer your home is on the market, the more you will have to drop the price. That you may need to make some improvements before your home is attractive to buyers. That you may not be able to get exactly what you want for what you’re willing to pay.

The agent pushes you toward homes that don’t fit

Occasionally, you’ll run into realtors who are more concerned about their bottom line than yours.  If your agent is herding you in the direction of properties that are out of your price range or not in your neighborhood, be wary. They may be pushing you toward a friend or associate’s listing, or putting their commission ahead of your needs.

These warning signs are all well and good, but what should you do when you miss them?

The first thing to remember is that your real estate agent is working for you. This isn’t a partnership, and they aren’t lending you their services out of the goodness of their heart. Other than that:

Be upfront. Every real estate agent has broken up with a client at one point or another—you shouldn’t need to tiptoe around their feelings. Lay it out for them.

Don’t hesitate. You’re making this decision for a reason. Don’t let yourself get talked into giving the agent a second chance.

Be respectful. When you point fingers and get angry, no one comes out of the situation looking good. Not to mention that you may need to, or even want to, work with this agent again in the future.

source: totalmortgage.com

Realtors’ Chief Economist Says FHA Loans Are a Rip-Off for Consumers

Last week, Zillow hosted its fifth housing forum in the nation’s capital to discuss current real estate matters.

The panel of reporters, real estate gurus, and policymakers discussed a number of issues, ranging from why people move to mortgage rates and affordability.

But perhaps the most controversial comment came from Lawrence Yun, the outspoken chief economist of the National Association of Realtors.

When the WSJ’s Nick Timiraos questioned whether the mortgage credit box was too tight, Yun took the opportunity to express his discontent with the FHA and its new sky-high premiums.


Are FHA Loans a Bad Deal?

He prefaced his comment by saying he might upset the lobbyists in Washington, but went ahead and said, “essentially they are ripping off the consumers,” when speaking of the FHA and its pricey premiums and fees.

Yun noted that FHA loans have historically been aimed at first-time home buyers and moderate-income buyers, so charging premiums that he refers to as “outrageous” almost warrants action from the Consumer Financial Protection Bureau (CFPB).

Sure, he was chuckling when he made that last comment, but it’s clear he’s not happy with their new premium structure, and has made it one of his priorities to whittle them back down to more reasonable levels.

The FHA has raised the upfront and annual insurance premiums multiple times over the past several years, mainly because they had no other choice but to raise capital to stay in business.

Additionally, many FHA borrowers now pay annual premiums for the life of the loan, further increasing the costs of homeownership.

That has certainly pushed the FHA loan share down in recent months, with conventional loans snagging a larger share of mortgages these days.


So When Are FHA Loans the Better Option?

In a related report from the Urban Institute, a nonpartisan think tank in D.C., the thinkers determined when FHA loans made more sense than conventional loans, and vice versa.

They assumed a purchase price of $250,000 with a five percent down payment, along with a mortgage rate of 4.29% on a conforming loan and 4% on an FHA loan.

Even with FHA premiums as high as they are today, a borrower with a loan-to-value of 95% would be better off with an FHA loan when their FICO score is below 680, as seen in the chart above.

If their credit score is above 680, they’re better off going the conforming/private mortgage insurance route.

So in that sense, the FHA is still serving that underserved portion of the population, at least with regard to low credit score and lack of a down payment.

Yes, there are borrowers who lack the necessary funds for a large down payment, but have good credit scores, and these people are essentially stuck paying more.

But that’s pretty much the consequence of having standards that were too loose prior to the housing bust. I don’t really see the FHA budging anytime soon.

A recent survey from NAR also indicated that 5.7% of originations were lost because of the higher FHA fees.

For the record, people move mainly to buy a larger home or for a new job (according to Lawrence Yun, grain of salt), and a lot of the panelists seem to think interest rates will be closer to 5% next year.

They also discussed interest-rate lock-in, which again Yun dismissed for the reasons mentioned above. Still, other panelists fear fewer homeowners will be willing or able to list their homes as interest rates rise. But only time will tell.

source: thetruthaboutmortgage.com

Hooray, Home Price Gains Are Slowing and Should Be Just Right by Year End

If we’ve learned anything from Goldilocks and the Three Bears, it’s that we should strive for “just right,” no matter if it’s porridge or home prices.

After all, if they’re too hot, a correction surely looms, and if they’re too cold, it means something isn’t quite right with the housing market and the economy at large.

Fortunately, home prices finally seem to be settling into long-term fundamentals, according to the latest edition of Trulia’s Bubble Watch.

 

Homes Prices Still 3% Undervalued 

 

The real estate portal’s chief economist Jed Kolko noted that home prices were only three percent undervalued in the second quarter, which tells us all is still good over at Bubble Watch.

 

 

Yes, there were signs we were headed right back to 2006, seemingly forgetting lessons learned just years earlier, but then accelerating home price gains abated.

Sure, home prices are still on the rise, but the pace is a lot more gradual, which as the title of this post suggests, is a good thing.

At the worst of times, back in the first quarter of 2006, home prices were 39% overvalued according to Trulia. We all know what happened next.

About five years later, we hit bottom as home prices were considered 15% undervalued in the fourth quarter of 2011.

Since then, it’s been a white-hot housing market, that is, until the past few quarters as reality finally caught up with us.

Now we’re on pace for a perfectly valued housing market by the final quarter of 2014, or perhaps the first quarter of 2015, though we still remain slightly undervalued.

In the first quarter, home prices were five percent undervalued and they were eight percent undervalued a year earlier.

The only caveat here is that artificially low mortgage rates might be throwing the numbers off a little bit, but if rates stay low for a long time that shouldn’t be an issue.

Home Prices Only 79% Back to Normal

 

As it stands, we’re only 79% back to normal in terms of whether home prices are under or overvalued. But a year ago we were 44% back to normal, so if we continued on that pace we’d swing too far the other way.

Heck, even a quarter earlier we were only 68% back to normal, so you have to wonder what the rush is.

The good news is that as we approach “normal,” home price gains are slowing, meaning they should be sustainable as we reach that sweet spot.

In fact, for the first time in nearly two years no local housing market has registered a year-over-year gain of more than 20%, so even the really, really hot markets are cooling off finally.

Again, home prices are still rising, but they’re climbing at a more normal pace, which is good for housing long-term.

At the same time, there are still markets that are getting a tad frothy, and those that have yet to ride the national housing train higher.

 

 

Orange County the Bubbliest Market

 

 

If you look at home prices relative to the fundamentals (historical prices, incomes, rents), Orange County, California was 17% overvalued in the second quarter.

While that might seem high, consider the fact that OC home prices were 71% overvalued relative to fundamentals back in the first quarter of 2006.

It’s not to say that home prices there have plenty of room to run before we can all jump ship and make a tidy profit again, but it does give you some perspective if you’ve got returning bubble fears.

Perhaps more disturbing is that eight of the 10 most overvalued metros are located in California, with Austin and Honolulu the only outsiders.

Akron Is Still Cheap

 

On the other end of the spectrum, it continues to be the Midwest that is undervalued, even with the spectacular home price gains realized over the past couple years.

The metropolitan area of Akron, Ohio is still 21% off if you consider the fundamentals, though it only ever climbed 18% above where it maybe should have during the prior boom.

Four of the bottom 10 metros can be found in Ohio, and of course Detroit is on that list, despite being an underdog story going forward.

Nationwide, 76 of 100 markets are still undervalued per Trulia and those that overvalued are only “just a bit” beyond where they should be, which means we don’t need to hit the panic button just yet.

source: thetruthaboutmortgage.com

7 Features Home Buyers Want Most

Homeowners are sometimes hesitant to upgrade when it's time to sell. After all, you won't be living there much longer, and home remodeling efforts only increase home values by 66.1% of the average project’s costs, according to Remodeling magazine’s 2014 Cost vs. Value report.

But think again, sellers. The cost of inaction can be far greater than the small loss you’ll incur on any home-improvement projects. “It can mean the difference between getting multiple bids at once and driving up the selling price or getting no offers,” says Brian Lewis, a real estate broker with Halstead Property, a New York-based realty firm. As your house lingers on the market, you’ll likely pay ongoing mortgage, maintenance and staging costs.

We’ve already highlighted several household features home buyers hate, including popcorn-finished ceilings, brass fixtures and vanity strip bathroom lighting. Now, consider what buyers want to see -- and what it will take to add such features to your home.
 

source: kiplinger.com

5 Unexpected Expenses for First Time Homebuyers

As my husband and I prepare to buy our first home, we’re coming to terms with how much money we really need to save.

The prices in the Southern California house market are staggering enough, but there are always more hidden expenses that you need to think about than just the cost of the house.

If you’re thinking about buying a house, you definitely want to increase your savings substantially. Will you have enough for 20% down payment? If not, you may have to look into an FHA loan which has lower down payment requirements.

If you haven’t already done so, you may also want to think about lowering your debt as much as possible. Lowering your debt makes you look like a more stable client when a lender is thinking about lending you money.

The bottom line is: if you’re thinking about buying your first home, get prepared to shell out lots of cash. You need cash for your down payment, you need cash to pay down your debt, and you need cash for a lot more things too.

Here are five unexpected expenses for first time homebuyers.

Closing Costs: Most homebuyers are aware that closing costs exist, but these days, closing costs can easily run five figures. And some lenders won’t let you roll that into your loan, meaning you need to have the cash on hand.

Two months’ Rent: Other lenders require that even after you’ve paid your down payment and closing costs, that you still have two months’ rent in cash reserves immediately available. This is to ensure that you won’t be flat broke the minute you move into your house. Depending on the size of your mortgage, this can easily be a few thousand dollars, especially if you live n the southern California area or another high-real estate city.

Property Taxes: In California, property taxes amount to 1% of the home’s sale value annually. However, there are additional taxes that can tack on cost to your annual property taxes. If you live in an area where property taxes are variable, your taxes can easily go up , costing you more over the life of the loan.

Home Insurance: You just bought a  new house, you want to protect it don’t you? Well, that’s going to cost you. Some lenders will roll in the cost of property taxes and home insurance into the loan, but it may be a better bet to purchase home insurance separately. Make sure you get several opinions and read the fine print on what your home insurance will actually protect you against.

HOA/Mello Roos: If you live in a newer California community, you may be charged mello roos, which are an additional tax in certain neighborhoods to help build up public spaces, like parks, schools, and libraries. You may also live in a Homeowner’s association, which helps maintain public spaces within the neighborhood like pools, and grassy medians. Some HOA’s even cover the outside of the home, like roofs. HOAs and Mello roos can easily add on several hundred to your monthly mortgage payment.

If you’re thinking about buying a home, make sure to look into all the additional charges of what it will actually cost to buy a home.

source: everythingfinanceblog.com

Know the Difference: Realtors, Real Estate Agents and Brokers

Real estate agents, real estate brokers, and realtors. What’s the difference? They all sell property, right? They’re all collecting commissions, and they all know how to negotiate deals. Why bother learning what the difference is? It’s sort of like a red house vs a blue house. They’re both houses, right? Not so fast. There are actually some key differences between all three of these designations. Knowing them might mean the difference between selling your home and keeping it for another year.

What An Agent Does

An agent is a real estate professional that works on your behalf to find you the right home. He negotiates for a price that you should be happy with, and he does not chase sales for commissions. Even though he does earn a commission on every sale, he has a fiduciary duty to make sure that you’re getting the home you need and deserve. He has a responsibility to you, the consumer.

That doesn’t mean that you shouldn’t hire another independent inspector to check out the home – even when you’re working with an agent from trusted sources, like Agent Harvest. Having a second opinion can confirm what the agent is telling you.

What A Broker Does

A broker is a real estate professional that usually has more experience. He is a senior agent with additional education and training under his belt. He’s also probably in a more managerial role at a real estate brokerage.

He may also be a specialist when it comes to certain types of property. However, real estate agents and real estate brokers are sometimes interchangeable, depending on where you live in the country. If you’re unsure whether there’s a difference where you live, ask. It’s the easiest way to clarify any misunderstanding, and it might just make the difference in how much you get for your home.

For example, if you have the opportunity to work with a broker, a senior agent, you might ge better service than from an agent (someone younger in the business). If your broker doesn’t really specialize in the types of home that you have, or the area where you live, then a broker might mean the difference between selling the house quickly and staying where you are for another year.

That’s a serious consideration, especially if you have to move because of a job relocation or you just need to sell the home to downsize or pay off debts.

What Realtors Do

Realtors differ from real estate agents and brokers in that they are members of the National Association of Realtors. This is an independent organization of real estate agents, brokers, and other real estate professionals.

It’s not so much that these people are radically different in what they do. It’s more that they may have more extensive training and they are bound by a specific code of ethics and a fiduciary duty that brokers might not have. Even agents aren’t held to the same standards as Realtors. So, choose wisely, and regardless of who you choose, always do your research. Just because someone has the education and training, or even experience, doesn’t mean they will be a good fit, personality-wise.

Phillip Waterman’s career in real estate spans decades. With a keen eye and clear manner, he enjoys writing about navigating the real estate market for today’s buyers and sellers.

source: 20smoney.com

Mortgage Applications Edge Up in Latest Week

NEW YORK -- Applications for U.S. home mortgages edged higher in the latest week, rebounding from a 13-year low set at the end of last year, an industry group said Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 2.6 percent to 345.1 in the week ended Jan. 3.

In the week ended Dec. 27, the index had slipped to 336.4, according to the release, the lowest mark since December 2000.

The release covered two weeks of data because of the holidays. Both weeks included holiday adjustments.

The U.S. Federal Reserve said last month it would start pulling back on its $85 billion a month bond-buying program as the economy grows strong enough to stand on its own.





That announcement, as well as months of speculation before the Fed actually moved, helped drive yields on benchmark 10-year U.S. Treasury notes about 125 basis points higher last year.

That jump in rates on the 10-year note, which is used as a standard in setting mortgage and other lending rates, has slowed mortgage applications recently.

The rate on fixed 30-year mortgages averaged 4.72 percent last week, the same as the prior week.

The MBA's seasonally adjusted index of refinancing applications rose 4.6 percent. That index hit a five-year low in the week ended Dec. 27, as well.

The gauge of loan requests for home purchases, a leading indicator of home sales, fell 0.5 percent.

The survey covers more than 75 percent of U.S. retail residential mortgage applications, according to MBA.

source: dailyfinance.com